Tesla has proposed a massive compensation package for CEO Elon Musk valued at US$ 1 trillion, or approximately IDR 16,000 trillion (based on an exchange rate of IDR 16,000). This extraordinary pay package was introduced after the company officially relocated its legal domicile from Delaware to Texas.

The move came after Tesla, in the previous year, canceled Musk’s US$ 56 billion pay package, which was deemed unreasonable and detrimental to shareholders. That decision pushed Musk to call on major corporations to leave Delaware, and eventually, Tesla formally established its legal base in Texas.

By moving to Texas, Tesla now enjoys greater legal flexibility to grant Musk such a huge compensation package. Texas corporate law is seen as strongly favoring management while making it harder for shareholders to sue the board of directors’ decisions.

“Tesla is fully shielded from shareholder lawsuits in Texas,” said Ann Lipton, a Law Professor at the University of Colorado, as quoted by Reuters on Sunday (September 7, 2025).

Unlike the 2018 pay package, this time Musk will be allowed to exercise his voting rights during shareholder meetings. With roughly 13.5% ownership of Tesla shares, Musk holds a substantial and influential vote.

Last year, shareholders opted to ratify Musk’s 2018 compensation package in an attempt to overturn the court’s ruling. However, a Delaware judge confirmed that the court’s decision remained valid.

Armed with his position as a major shareholder and the legal protections offered by Texas, Musk now faces virtually no obstacles in securing this trillion-dollar compensation. The package not only reinforces his status as the world’s richest person but also cements his role as the highest-paid CEO in corporate history.